Property companies are expanding their investment to develop more than Bt50-billion worth of residential and commercial projects in Phuket this year and next, with strong demand from both Thais and foreigners.

According to a survey by The Nation, several Phuket developers and investors have introduced brand-new residential developments and commercial buildings in the province.

For example, Central Retail Corp is spending more than Bt20 billion to develop a major mixed-use project comprising luxurious shopping malls, top-class hotels, condominiums and office buildings, intending to change the island into a dream location. The project, on 200 rai (32 hectares) of land, is expected to be completed within five to seven years.

Other famous developpers like Sansiri, Charn Issara Development, Tri Property or Amari Estate have all huge plan for the island, with several projects worth more than Bt1 billion.

According to a research by CB Richard Ellis also, Phuket condominium projects launched in the first half of this year contained 824 units, of which 70.5 per cent have already been sold, while new villa projects comprised 128 units, of which 62.5 per cent have been sold.

Meanwhile, the island sees plans for two new shopping-centre projects – Central Festival Phuket and The Garden community mall – plus 1,032 hotel rooms with rates above Bt2,000 per night.

The research shows demand to purchase homes in Phuket is coming from both domestic and foreign buyers, with the latter – largely from Scandinavia, other parts of Europe and Singapore – mainly looking to buy a vacation property.

According to the survey by The Nation, this year through 2015 will see more than 4,000 new condominium and low-rise housing units completed on the island.

The demand for condominium units priced between 1 million baht and 2 million baht is particularly strong, said Phuket Real Estate Association director Monthavee Hongyok. Residential prices have increased by between 5 and 15 per cent this year, he added, as well as land prices both in the city location and areas located close to the beaches.